Correlation Between Cullman Bancorp and Auburn National
Can any of the company-specific risk be diversified away by investing in both Cullman Bancorp and Auburn National at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cullman Bancorp and Auburn National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullman Bancorp and Auburn National Bancorporation, you can compare the effects of market volatilities on Cullman Bancorp and Auburn National and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cullman Bancorp with a short position of Auburn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullman Bancorp and Auburn National.
Diversification Opportunities for Cullman Bancorp and Auburn National
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cullman and Auburn is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Cullman Bancorp and Auburn National Bancorp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auburn National Banc and Cullman Bancorp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cullman Bancorp are associated (or correlated) with Auburn National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auburn National Banc has no effect on the direction of Cullman Bancorp i.e., Cullman Bancorp and Auburn National go up and down completely randomly.
Pair Corralation between Cullman Bancorp and Auburn National
If you would invest 2,161 in Auburn National Bancorporation on August 29, 2024 and sell it today you would earn a total of 205.00 from holding Auburn National Bancorporation or generate 9.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Cullman Bancorp vs. Auburn National Bancorp.
Performance |
| Timeline |
| Cullman Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Auburn National Banc |
Cullman Bancorp and Auburn National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullman Bancorp and Auburn National
The main advantage of trading using opposite Cullman Bancorp and Auburn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullman Bancorp position performs unexpectedly, Auburn National can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Auburn National will offset losses from the drop in Auburn National's long position.| Cullman Bancorp vs. Home Federal Bancorp | Cullman Bancorp vs. Lake Shore Bancorp | Cullman Bancorp vs. Community West Bancshares | Cullman Bancorp vs. Magyar Bancorp |
| Auburn National vs. Home Federal Bancorp | Auburn National vs. LINKBANCORP | Auburn National vs. Affinity Bancshares | Auburn National vs. Southern California Bancorp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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